GCC PVC producers hike March offers on feedstock costs

28 February 2013 11:46[Source: ICIS news]

SINGAPORE (ICIS)--Polyvinyl chloride (PVC) producers in the Gulf Cooperation Council (GCC) region increased their offers for March shipments by $50-60/tonne over February prices, market sources said on Thursday.

Producers said that prices for March loading cargoes rose because of a significant increase in feedstock costs.

Offers to the GCC region were at $1,150-1,170/tonne DEL (delivered) GCC, from $1,100-1,120/tonne DEL GCC in February.

In the East Mediterranean (East Med) markets, offers were at $1,180/tonne DEL East Med, up from February prices of $1,130-1,150/tonne DEL East Med.

Earlier this month, offers from US producers to the GCC for February-loading shipments rose, on limited availability of product for export.

This followed the force majeure declaration by major domestic producer Westlake Chemical as well as turnarounds at some other domestic facilities and an expected recovery of demand from the US housing sector.

According to ICIS data, PVC prices in the Middle East markets rose by $30-40/tonne in the week ended 22 February tracking firmer US and European offers.

Prices in the GCC markets ranged from $1,100-1,120/tonne CFR (cost and freight) GCC, while East Med markets were buoyant at $1,120-1,140/tonne CFR East Med.

Demand in the GCC region was upbeat, but largely dominated by lower-priced cargo deals. These cargoes, booked in December at below $1,000/tonne CFR GCC that weighed on buying sentiment for March-shipping lots.

Converters were heard to firmly resist US and Asian offers at prices above $1,100/tonne CFR GCC for March lots.

Demand in the East Med region was weak due on-going political disturbance in the region.